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Hyundai has shown interest in leveraging Samsung’s automotive semiconductor production line, which utilises the 5-nanometer “SF5A” process, for the mass production of autonomous driving chips that the automaker is currently developing, reported The Korean Economic Daily, citing sources familiar with the matter.
According to the report, industry experts believe that a deal between Hyundai and Samsung would be mutually beneficial.
Hyundai hopes to identify a strong domestic origin chain for its self-driving semiconductors, reducing its dependence on foreign chipmakers such as Taiwan Semiconductor Manufacturing Company (TSMC), which can lead to freight savings.
Hyundai is expected to be a key visitor to Samsung’s position in the developing autonomous chip market, which is expected to earn $29 billion through 2030. Sources say the partnership could also help Samsung secure orders to larger scale.
The automotive industry is moving toward the internal progression of self-driving chips, a trend through Tesla.
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This trend aligns with “software-defined” cars, which feature complex systems such as premium infotainment and fully autonomous driving technology.
Hyundai Motor, a part of Hyundai Motor Group that includes Kia and Hyundai Mobis, has been bolstering its semiconductor development capabilities since last year.
The company plans to launch cars equipped with its own automotive chips until 2026.
Samsung has already established relationships with several chip designers and automakers for its 5nm chip process.
In July 2023, Samsung reached an agreement to manufacture Tesla’s next-generation fully autonomous chips for its level five autonomous vehicles, with mass production beginning in 3 to 4 years.
In the past, Tesla partnered with TSMC for the production of the HW 5. 0 automotive chip.
Samsung and Tesla their generational partnership after Samsung Group leader Jay Y. Lee will meet with Tesla CEO Elon Musk in May 2023.
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